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HomeMy WebLinkAbout04/01/09_PFA_AGENDA_PACKET'~ ' ' BAKERSFIELD PUBLIC FINANCING AUTHORITY ~~ ~ BOARD OF DIRECTORS ''qt AGENDA SPECIAL MEETING OF APRIL 1, 2009 Council Chambers, City Hall, 1501 Truxtun Avenue Special Meeting - 5:15 p.m. SPECIAL MEETING - 5:15 p.m. ROLL CALL 2. PUBLIC STATEMENTS 3. MINUTES a. Approval of minutes of the February 23, 1994 Special Meeting of the Bakersfield Public Financing Authority Board of Directors. 4. NEW BUSINESS a. Resolution authorizing the execution and delivery of a Bond Purchase Agreement with the Bakersfield Redevelopment Agency and George K. Baum & Company and authorizing and directing actions related thereto. Staff recommends adoption of resolution. b. Authorize transfer of residual fund balance of $229,154.31 from the Bakersfield Public Financing Authority to the City of Bakersfield. Staff recommends approval of transfer. c. Setting next Public Financing Authority meeting to be held in conjunction with a City Council Meeting in the first quarter of 2010. Staff recommends approval. 5. ADJOURNMENT Respectfully submitted, ~iLK.rl..> ~.~~ Alan Tandy City Manager 03/25/09 10:40am A OF u ~ ~ ~ ° ADMINISTRATIVE REPORT '~~v u, 10 MEETING DATE: April 1, 2009 AGENDA SECTION: Consent Calendar ITEM: 3 , Q„ TO: Honorable Mayor and City Council FROM: Pamela McCarthy, City Cler c~w/ DATE: March 20, 2009 APPROVED DEPARTMENT HEA ~ ~~ CITY ATTORNEY CITY MANAGER SUBJECT: Approval of minutes of the February 23, 1994 Special Meeting of the Bakersfield Public Financing Authority Board of Directors. RECOMMENDATION: Staff recommends approval. BACKGROUND: ndw MEETING DATE: April 1, 2009 AGENDA SECTION: New Business ITEM: 1-{ , a . TO: Chairman and Board of Directors of the Bakersfield Public Financing Authority APPROVED FROM: Nelson K. Smith, Treasurer of the Authority TREASURER ~ DATE: March 19, 2009 GENERAL COUNSEL /(~' EXECUTIVE MANAGER SUBJECT: Redevelopment Agency Tax Allocation Bonds 2009 Series A, B, C & D 1. Resolution of the Governing Board of the Bakersfield Public Financing Authority authorizing the execution and delivery of a Bond Purchase Agreement by and among the Authority, the Bakersfield Redevelopment Agency and George K. Baum & Company and authorizing and directing actions related thereto. RECOMMENDATION: Staff recommends adoption of the resolution. BACKGROUND: The Bakersfield Redevelopment Agency took several actions at their March 31, 2009 meeting to move forward with and RDA bond issue to fund a variety of redevelopment projects. The City Council will be asked later this evening to adopt a resolution approving the issuance of the bonds and related actions. The debt to be incurred will be debt of the Redevelopment Agency and will be repaid with a combination of RDA Tax Increment revenues and RDA Housing set-aside funds. The Bakersfield Public Financing Authority (the Authority) was originally created in 1993 to facilitate the issuance of several bond transactions (in 1994) including debt related to the Convention Center Ballrooms and Meeting Rooms, bridge projects, sewer projects, and the refinancing of some Assessment District debt. The Authority is being asked this evening to facilitate the negotiated sale of the Redevelopment Agency Tax Allocation Bonds 2009 Series A, B, C 8~ D by authorizing and being a party to the Bond Purchase Agreement with the Bakersfield Redevelopment Agency and the bond underwriter, George K. Baum and Company. The Authority is acting as a "pass through" agent to facilitate the negotiated sale transaction. Neither the Authority nor the City will have any obligation regarding the repayment of the bonded debt to be incurred by the Redevelopment Agency. The remainder of information being provided below is a copy of the information provided to the Redevelopment Agency at their meeting yesterday regarding the pending bond transaction. nks P:~BondDocsWdmin -RDA TABS series ABCD to PFA board April 1, 2009.doc March 19, 2009 4826-0198-1440.2 ADMINISTRATIVE REPORT RDA REPORT INFORMATION City/Agency staff have been planning and anticipating several redevelopment projects for several months. An overview of these potential bond funded projects was provided to the Agency members at their October 13, 2008 meeting. The proposed projects include the following: • Property Acquisition adjacent to Mill Creek at 60017th Street • Construction of Sewer Lift Station, Wet & Dry Utilities on 18th and 19th Street • Property Acquisition adjacent to Mill Creek at 600 &602 18th Street • Infrastructure Improvements for Milt Creek Linear Park Canal at South Mill Creek • Property Acquisition on California Avenue in the Mill Creek vicinity • Multi-family urban housing project (the Courtyard - 57 units) in the vicinity of South Mill Creek • Multi-family for sale town-homes (Creekview - 36 units) between R, S, 14th, 8~ Calif. Ave • Mixed use project involving reuse of a property at 1612 19th Street (City Lofts) • Affordable senior housing rental project (19th Street PIa2a) on Mill Creek at 18th 8~ 19th Streets The estimated cost of completing these projects is approximately $13,625,000. However, the exact amount of funds necessary to complete each of the individual projects is not known at this time and several of the projects are subject to negotiations and / or formal bidding processes that are in various stages of completeness. In addition to the estimated construction proceeds, we need to include funding for required debt service reserve funds, legal fees, and other costs associated with the issuance of the bonds. The total par amount of the bonds sold will not exceed $16.5 million. We are requesting to move forward with this bond sale at this time so we can provide some assurance to the other parties involved (property owners and/or contractors) that funds are actually available to enter into binding contracts. Both the City and the Agency have a long history of not entering into agreements until funding is in place. THE BOND STRUCTURE: The bond sale is being structured in four (4) separate series of bonds. The four series are separated by project type and/or by project area. The Series A bonds will fund those projects that qualify for tax exempt funding and are located in the Old Town Kern project area. The Series B bonds will fund those projects that qualify for tax exempt funding and are located in the Southeast project area. The Series C bonds will fund projects in the Southeast project area that do not qualify for tax exempt financing. Finally, the Series D bonds will fund Low and Moderate Housing related projects that can be repaid with housing set-aside funds. Housing projects from all three project areas will be combined in the Series D bonds for marketing purposes, but it is the intent of staff to repay the debt on a proportionate basis; matching the individual projects with the project area housing funds. FINANCING DOCUMENTS: The various documents we are asking the Agency to approve "as to form" include various Bond Indentures, Preliminary Official Statements, Bond Purchase Agreements, and Continuing Disclosure Certificates. The Bond Indentures provide the basic framework, structure and definition for the various series of bonds. These documents set out all the rules that must be followed and detail the legal basis for the bond administration. nks P:~BondDocsWdmin -RDA TABS series ABCD to PFA board April 1, 2009.doc March 19, 2009 4826-0198-1440.2 ADMINISTRATIVE REPORT The Preliminary Official Statement is the disclosure document provided by the Agency and the Underwriter to prospective purchasers of the Bonds and the Final Official Statement is the disclosure document provided by the Agency to the Underwriter of the Bonds who then in turn provides the document to purchasers of the Bonds. In connection with the Preliminary Official Statements, the Agency must execute a Rule 15c2-12 Certificate, in which the Agency represents that the Preliminary Official Statement has been "deemed final" within the meaning of the Securities and Exchange Commission Rule. The Purchase Contract requires the Underwriter to purchase the Bonds, provided certain terms and conditions set forth therein are met by the Agency and other parties. The Continuing Disclosure Certificates set out the Agency's obligation under S.E.C. Rule 15c2-12 to provide updated financial and operating information to certain securities information repositories on an annual basis and to provide notices of certain material events to such securities information repositories upon the occurrence of such material events. nks P:\BondDocsWdmin -RDA TABs series ABCD to PFA board April 1, 2009.doc March 19, 2009 4826-0198-1440.2 MEETING DATE: April 1, 2009 AGENDA SECTION: New Business !~ ITEM: ~-I . b . T0: Chairman and Board of Directors of the Bakersfield Public Financing Authority FROM: Nelson K. Smith, Treasurer of the Authority DATE: March 19, 2009 APPROVED TREASURER /l/S GENERAL COUNSEL ~~ EXECUTIVE MANAGER SUBJECT: Authorize transfer of residual fund balance in the amount of $ 229,154.31 from the Bakersfield Public Financing Authority to the City of Bakersfield RECOMMENDATION: Staff recommends authorization of the transfer to the City. BACKGROUND: The Bakersfield Public Financing Authority (the Authority) was originally created in 1993 to facilitate the issuance of several bond transactions (in 1994) including debt related to the Convention Center Ballrooms and Meeting Rooms, bridge projects, sewer projects, and the refinancing of some Assessment District debt. The debt issues have all been paid in full as of October 2008 and there remains a residual fund balance within the Authority funds. These residual monies are the surplus interest earnings on the reserve fund that were not needed to make the final debt retirement payment. Transfer of these funds to the City will allow staff to close out the financial records of the Authority this fiscal year, which will save the organization in future costs of annual audits and related financial reporting for the PFA. Staff is requesting authorization to transfer these monies to the City's Capital Outlay Fund as a one time revenue source to fund future capital or maintenance needs of the Rabobank Arena and Convention Center complex. The City Council will be asked later this evening to accept the transfer and appropriate the funds for this purpose. nks S:WdminWdmin -PFA close out transfer to city April 1, 2009.doc March 19, 2009 4826-0198-1440.2 ~ A S d ADMINISTRATIVE REPORT ~ ~.,~~ tr MEETING DATE: April 1, 2009 AGENDA SECTION: Consent Calendar ITEM: y , C . TO: Honorable Mayor and City Council FROM: Pamela A. McCarthy, City CI rk DATE: March 25, 2009 APPROVED DEPARTMENT HEA ~ ~'T CITY ATTORNEY, CITY MANAGER /~' SUBJECT: Setting next Public Financing Authority Meeting to be held in conjunction with a City Council Meeting in the first quarter of 2010. RECOMMENDATION: Staff recommends approval. BACKGROUND: :pl March 25, 2009, 2:25PM S:\Council\admins\2009\pfa mtg date 2010.dot